Why Tesla is fighting the DMV after already changing its product names
Tesla has filed a lawsuit in California Superior Court against the California Department of Motor Vehicles, according to CNBC. The automaker seeks to overturn a DMV ruling which determined its marketing practices were deceptive regarding vehicle automation. The legal action follows a compliance period where Tesla altered its product naming to satisfy regulatory demands. The dispute centers on whether marketing terms accurately represent driver-assist technologies.
The California DMV previously accused Tesla of violating state law by overstating its vehicles’ automated driving capabilities. The agency asserted that terms like “Autopilot” could mislead consumers about a vehicle’s self-driving potential. Following this accusation, the DMV requested an administrative law judge suspend Tesla’s sales and manufacturing licenses for 30 days as a penalty. However, the regulator opted against an immediate suspension, instead granting Tesla a 60-day window to bring its marketing materials into full compliance with state regulations.
In response to the regulatory pressure, Tesla took significant steps to address the DMV’s concerns. The company ceased using the term “Autopilot” in all California marketing materials. Furthermore, Tesla went beyond the DMV’s specific request by discontinuing the Autopilot package entirely in both the United States and Canada in January. This move effectively removed the branded software suite from sale in those markets. Despite these compliance measures, Tesla has now initiated legal proceedings to challenge the underlying validity of the DMV’s original deceptive marketing ruling.